News

24.05.2010

Uzbek fertilizer producers aim at foreign markets

In late March, it was reported that the plant producing ammonia and nitrogen fertilizers would be built in the Navoi region. The main investor is International Petroleum Investment Co. (IPIC), based in Dubai, UAE.

The project was approved by the Uzbek government, which signed the agreement providing for the obligations of the Uzbek side and the IPIC, TCA reported.

As no new chemical companies have been established in Uzbekistan since the Soviet era, this project is unique. Also, it is the first time that a large investment company is to build something from the ground up in Uzbekistan.

The complex will produce 900,000 tons of ammonia and one million tons of urea (nitrogen fertilizer) per year. Germany's MAN Ferrostaal AG will be the main contractor.

These are huge capacities for Uzbekistan with the ammonia production comparable to the annual production of the entire country, and urea production at the new plant alone will be almost double the country's annual output. 70% of the production will be exported.

Actually, the location for the future complex (not far from the Navoi Free Industrial and Economic Zone (FIEZ), which is under construction), was tailored for the export of ammonia and urea.

A joint venture, established by the Uzkhimprom and IPIC, will be the project's operator. Construction of the complex will begin in the fourth quarter of 2010 and is expected to be completed in 2013.

The project will be financed through loans and investments of $804 million, obtained by IPIC, $268 million of their own money, and $268 million from Uzkhimprom.

President Islam Karimov has already called the future production "an important signal that even amid the crisis Uzbekistan is implementing strategic projects".

Market analysts see no obstacles in implementing the project, because the most important components - financing and raw materials – have already been secured.
UzReport.com